In today’s complex world, leaders are being asked to step up in dynamic and unexpected ways.
Unfortunately, many of them are not equipped with the tools they need to lead under pressure. As a result, they fail to serve themselves and their employees effectively, and put the future of their entire organization at risk.
The Behaviors That Result in Mediocre Leadership
Today’s infographic from Vince Molinaro’s Accountable Leaders reveals the common behaviors that can result in leaders becoming mediocre due to mounting day-to-day pressures.
Order Vince Molinaro’s new book, Accountable Leaders
Leadership accountability is one of the most important ingredients for driving business growth and maintaining a healthy corporate culture.
How can leaders set the tone for accountability in their organization?
Accountable Leaders Invest in Themselves
Every leader has an obligation to their employees, their customers and their community, but failing to put themselves first could have serious consequences—and cause a ripple effect across other parts of the business.
In fact, 40% to 80% of a manager’s time is spent on activities that add little to no value, when the majority of their time should be spent investing in their personal development.
By not having a holistic view of their development, leaders succumb to the day-to-day challenges that come with managing a company, such as:
- Getting in over their head
- Confusing acting rough with tough
- Mistaking effort for results
- Feeling like the victim
- Being insecure and unable to use their voice
- Constantly needing to hear good news
- Needing to win at all costs
- Waiting for permission to act from senior leaders
- Being driven to distraction and lacking focus
- Not learning from past mistakes
Moreover, if leaders struggle to meet expectations, the risk is that they either give up, or ultimately become a mediocre leader—but what exactly does that look like?
The Characteristics of a Mediocre Leader
Mediocre leadership has become remarkably commonplace, yet it is not always easy for organizations to identify.
Here are the five problematic characteristics of a mediocre leader:
- Blames others: Never personally acknowledges their role or contribution to any mistake or failure.
- Selfish and self-serving: Regularly acts out of self-interest and brings a sense of entitlement to the role.
- Uncivil and mean: Routinely mistreats, demeans and insults others, usually in public.
- Inept and incompetent: Makes bad decisions, resulting in a trail of disaster behind them.
- Lacks initiative: Looks for the easy way out by deflecting responsibility.
Leaders cite several reasons for falling into this mediocre leadership trap, including their fear failure, having unclear leadership expectations, and being overloaded with tasks that could be delegated elsewhere.
The Danger of Mediocre Leadership
It comes as no surprise that this style of leadership has a negative impact on employees, with 73% claiming that they spend a significant amount of time dealing with problems that arise from an ineffective manager.
However, employees will put up with a mediocre leader because they find the work itself meaningful, or they value the relationship they have with their peers.
But while mediocre leaders can bring a team closer together through their collective misery, eventually this reaches a tipping point which could result in a high staff turnover or low rates of employee engagement.
Avoid a Culture of Mediocrity
As we navigate uncertain waters, leaders must not only demonstrate agility and resilience—they must also advocate for a culture of accountability.
”Senior leaders create the culture and set the tone for the organization. It’s imperative that they drive the set of behaviors influencing the behaviors of the next line leaders.”
—Molinaro, Vince (2020), Accountable Leaders.
But in order to maintain accountability across an organization, mediocre behavior must be addressed, and difficult decisions will need to be made.
Ranked: The Best and Worst Pension Plans, by Country
As the global population ages, pension reform is more important than ever. Here’s a breakdown of how key countries rank in terms of pension plans.
Ranked: Countries with the Best and Worst Pension Plans
The global population is aging—by 2050, one in six people will be over the age of 65.
As our aging population nears retirement and gets closer to cashing in their pensions, countries need to ensure their pension systems can withstand the extra strain.
This graphic uses data from the Melbourne Mercer Global Pension Index (MMGPI) to showcase which countries are best equipped to support their older citizens, and which ones aren’t.
Each country’s pension system has been shaped by its own economic and historical context. This makes it difficult to draw precise comparisons between countries—yet there are certain universal elements that typically lead to adequate and stable support for older citizens.
MMGPI organized these universal elements into three sub-indexes:
- Adequacy: The base-level of income, as well as the design of a region’s private pension system.
- Sustainability: The state pension age, the level of advanced funding from government, and the level of government debt.
- Integrity: Regulations and governance put in place to protect plan members.
These three measures were used to rank the pension system of 37 different countries, representing over 63% of the world’s population.
Here’s how each country ranked:
The Importance of Sustainability
While all three sub-indexes are important to consider when ranking a country’s pension system, sustainability is particularly significant in the modern context. This is because our global population is increasingly skewing older, meaning an influx of people will soon be cashing in their retirement funds. As a consequence, countries need to ensure their pension systems are sustainable over the long-term.
There are several factors that affect a pension system’s sustainability, including a region’s private pension system, the state pension age, and the balance between workers and retirees.
The country with the most sustainable pension system is Denmark. Not only does the country have a strong basic pension plan—it also has a mandatory occupational scheme, which means employers are obligated by law to provide pension plans for their employees.
Adequacy versus Sustainability
Several countries scored high on adequacy but ranked low when it came to sustainability. Here’s a comparison of both measures, and how each country scored:
Ireland took first place for adequacy, but scored relatively low on the sustainability front at 27th place. This can be partly explained by Ireland’s low level of occupational coverage. The country also has a rapidly aging population, which skews the ratio of workers to retirees. By 2050, Ireland’s worker to retiree ratio is estimated to go from 5:1 to 2:1.
Similar to Ireland, Spain ranks high in adequacy but places extremely low in sustainability.
There are several possible explanations for this—while occupational pension schemes exist, they are optional and participation is low. Spain also has a low fertility rate, which means their worker-to-retiree ratio is expected to decrease.
Steps Towards a Better System
All countries have room for improvement—even the highest-ranking ones. Some general recommendations from MMGPI on how to build a better pension system include:
- Increasing the age of retirement: Helps maintain a more balanced worker-to-retiree ratio.
- Enforcing mandatory occupational schemes: Makes employers obligated to provide pension plans for their employees.
- Limiting access to benefits: Prevents people from dipping into their savings preemptively, thus preserving funds until retirement.
- Establishing strong pension assets to fund future liabilities: Ideally, these assets are more than 100% of a country’s GDP.
Pension systems across the globe are under an increasing amount of pressure. It’s time for countries to take a hard look at their pension systems to make sure they’re ready to support their aging population.
Football Fever: Investing in the Beautiful Game
Football’s global appeal has boosted the game into a billion-dollar industry. How can fans and investors cash in on their favorite clubs?
Football Fever: Investing in the Beautiful Game
The very mention of football conjures up images of cheering fans from all corners of the world.
The global appeal of the game is undeniable, and it’s the strong support of fans that has propelled its growth into a multi-billion dollar industry.
Today’s infographic from Swissquote tracks how the sport has reached far and wide—even onto the stock exchange.
The Timeline of the Manchester United IPO
Manchester United is the largest publicly-traded football club in the world. The journey of its initial public offering (IPO) can be traced back almost 30 years.
- 1991: Man United floats on the London Stock Exchange (LSE)
It aims to raise £10 million, but falls short and finally raises £6.7 million.
- 2003-2005: Malcolm Glazer acquires ownership of Man United
This raises the club’s market capitalization to £790 million, and it delists from the LSE.
- 2012: Man United lists on the New York Stock Exchange
It aims to raise £62.8 million in this IPO, but surpasses this with a final raised value of £146.3 million. Interestingly, George Soros was the biggest investor in this deal, buying a nearly 2% stake in the club.
What makes a football team like Manchester United so attractive in the eyes of investors?
Over decades, a flourishing fan base from viewers to consumers has been the force behind the football industry’s success as a whole.
The Big Business of Football
FIFA, the international governing body of football, organizes and promotes all major tournaments. Its total revenue between 2015-2018 can be broken down into a few main components:
|Revenue Source||Amount||% of total|
|Broadcasting rights||€2,800 million||48%|
|Marketing rights||€1,500 million||27%|
|Accommodation and ticket sales||€600 million||11%|
|Licensing rights||€500 million||9%|
|Other revenue||€300 million||5%|
|Total: €5,800 million|
In fact, 83% of this total revenue came from the 2018 Russia World Cup alone. This was viewed by approximately 3.6 billion people—nearly half the world’s population.
The World Cup’s revenue even rivals the combined strength of the top five European clubs. How do the five major clubs make their money?
|Club||Matchday||Broadcast||Commercial/ Sponsorships||2019 Revenue|
As viewership climbs, broadcasting rights furiously grow too—presenting numerous investment opportunities in sponsorship on the pitch and on the screen.
Cashing in on Clubs
Manchester United (NYSE:MANU) set a new precedent for publicly-traded football clubs—with a market cap worth near €1.8 billion today.
Following Man United’s example, other major clubs have since gone public across Europe. As well, Asia presents an emerging opportunity as the sport’s regional popularity expands.
|Club||Stock Ticker||Mkt Cap (Jul 31, 2020)|
|🇮🇹 Juventus FC S.p.A||JUVE:IM||€1.19B|
|🇩🇪 Borussia Dortmund||BVB:GR||€511M|
|🇮🇹 AS Roma||ASR:IM||€320M|
|🇬🇧 Celtic F.C.||CCP:LN||€108M (£97M)|
|🇨🇳 Guangzhou Evergrande Taobao||NEEQ:834338||N/A|
|🇮🇩 Bali United||IDX:BOLA||€57M (Rp894B)|
China’s most valuable football club—backed in part by e-commerce giant Alibaba—closely matches the valuation of Manchester United.
In Southeast Asia, Bali United was the first team to go public in June 2019. Shares jumped 69% higher than the initial listing price upon its IPO. This move is already propelling more planned IPOs for more football teams in the region, such as Persija Jakarta—the 2018 Liga 1 champion—and Thailand’s Buriram United.
The Future of Football
Football has the power to stir passions and unite people—and it’s reinventing itself constantly.
The 2019 Women’s World Cup was the most watched in tournament history, with over 1.12 billion tuning in. FIFA plans to invest almost €454 million more into the women’s game between 2019-2022, and grow the number of female players to 600 million by 2026.
Additionally, the annual esports tournament eWorld Cup is taking place in Thailand in 2020—tapping into the esports boom in Asia, which hosts 57% of esports enthusiasts.
Any football fan will tell you that the beautiful game is more than just a sport. And for investors, there are a variety of ways to gain exposure to this market—meaning fans can be both personally and financially invested as it continues to grow.
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